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Cosmos’ stablecoin protocol hacked within hours of this new announcement

3min Read

The exploit was announced on the same day that Cosmos’ Interchain Foundation appointed Brian Crain as its new president.

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  • Harbor protocol disclosed that it was hacked but what will the impact on Cosmos and ATOM be?
  • ATOM flashed signs that it might be developing a wave of accumulation.

The Harbor protocol, a cross-chain stablecoin protocol that operates on the Cosmos network just announced that it suffered an exploit. The DeFi protocol issued its official statement on Twitter.

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According to the statement, the, Harbor managed to identify the wallet that the attackers used. They also found that the attackers managed to drain some funds from multiple asset vaults.

Harbor did not disclose the size of the losses incurred, but noted that the figures would be highlighted in its official incident report. The stablecoin protocol also added that it was engaged in efforts to secure control over the situation.

The exploit was announced on the same day that Cosmos’ Interchain Foundation announced Brian Crain as its new president. Brian happens to be the CEO of ChorusOne, a company that offers decentralized institutional staking services.

Brian’s experience as ChorusOne’s CEO means he has vast experience in dealing with multiple staking networks. His appointment as the new president of Interchain Foundation reflects Interchain’s next step in the grand scheme of things. Interchain is expanding link to more blockchain networks especially those with a Proof of stake consensus mechanism.

Should investors expect an impact on ATOM’s price action?

The appointment of a new Interchain’s new president could have an impact in terms of long-term growth. As such, it may not have an immediate impact. On the other hand, negative news tends to have a bigger impact and reports of the exploit fit the bill. The market may react depending on the amount of funds stolen, especially if it is enough to trigger FUD and heavy liquidity outflows.

ATOM may have already exhausted its bearish potential during the recent crash. Its $7.61 press time price represents an attempt to bounce off from its recent lows.

ATOM price action

Source: TradingView

ATOM has been showing signs of an extended pivot. For example, its RSI is attempting to bounce from oversold zone and the MFI indicates a shift in favor of accumulation. In addition, its on-chain volume reached a monthly peak on Friday, suggesting that a wave of accumulation might have curtailed the downside.

Cosmos ATOM volume

Source: Santiment

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The demand levels have not been strong enough to support a strong pivot despite the volume surge. This reflects the fact that most investors are still on a bearish sentiment. The weighted sentiment is yet to recover from its lower monthly range.

Nevertheless, Cosmos registered a surge in social dominance which could have something to do with the post-exploit reactions.

Cosmos social dominance and weighted sentiment

Source: Santiment


Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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